People often make a wise choice by investing in insurance but this is not where your responsibilities come to an end. You need to pay timely premiums and renew your policy on time to make sure that your policy does not lapse on time and you get the perks of your policy.
So if you are still wondering what would happen if you do not renew your policy on time and it lapse. As it is rightly said that, “A Stitch in Time Save Nine”. Here are a few reasons why you should renew your policy on time.
To enjoy the perks of tax benefits
Your insurance policy offers you tax benefits along with the coverage on the premium amount you pay. However, if you do not renew your policy on time or fail to pay the premiums on time then you are ceased of the tax benefits that your insurance policy offers.
Helps you with the low premium benefits
The insurer takes the following factors into account before it zeros down on your premium amount. Those factors include your age, lifestyle and your medical history. Since when you are younger you ought to pay less premium cost as the age factor. In addition, renewing your policy before it lapses ensures that your premiums remain constant to the first availed amount. So, timely renewal of insurance can help you in enjoying low premium benefits.
There is no need of medical tests while renewing your policy
Few insurers make it mandatory for the insured to undergo a series of medical tests for the first time while they buy insurance. However, there is a plus point that you need not go for any medical tests while renewing your policy. But this thing is only possible if you renew your policy on time. If you fail to renew the policy on time, then you would be considered as a new entrant and will have to go again for a series of medical tests.
Serves your purpose of buying the Insurance
Life is very unpredictable and any mishap or unwelcomed situations can come your way at any point of time. In case your insurance policy is active you get the benefits of the coverage. However, if you haven’t renewed your premium on time you might have defeated all the purpose of buying your insurance.
In addition to all the above factors one more important factor is in the event of calamity, you won’t be covered if your policy lapses due to non-renewal of your policy on time.
At last, some important facts that need to consider before buying insurance is that not all policies come with a renewal option. Hence, investing about the renewal option becomes very mandatory since buying a policy without renewal option means you will have to pay higher premiums the next time you buy the policy. Investing in a policy with renewability provision assures that the same assured amount and wholesome coverage as your original policy and at the same time removes the hassles of new medical tests.
Attributed to Mr. Rakesh Goyal, Director, Probus Insurance Broker Limited
